A Fixed Asset with a Cost of $41,000 and Accumulated

question 41

Multiple Choice

A fixed asset with a cost of $41,000 and accumulated depreciation of $36,000 is traded for a similar asset priced at $50,000 fair market value in a transaction with commercial substance.Assuming a trade-in allowance of $4,000,at what cost will the new equipment be recorded in the books?

• A)$50,000
• B)$45,000
• C)$51,000
• D)$54,000

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Definitions:

Sustainability

Sustainability involves making decisions and taking action that are in the interests of protecting the natural world, with particular emphasis on preserving the capability of the environment to support human life and wellbeing.

Supply Chain

The system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Product Design

The process of creating a new product to be sold by a business to its customers, focusing on specifications, aesthetics, and usability.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to achieve the goals.